Huge demand for Townsville rental stock in wake of floods: HTW residential

The unprecedented monsoonal event of February 2019 and subsequent floods have led to an upheaval in Townsville market as it undergoes a period of adjustment.

Some property transactions being driven as much by emotional factors as market fundamentals, according to the latest Herron Todd White (HTW) residential report. 

The report noted that the rental market has tightened significantly following this event, with a reported 3,300 properties suffering water inundation of varying levels.

"This displacement of home owners and renters along with the arrival of assessors and builders has resulted in huge demand for rental stock, with vacancy rates falling to a very tight overall trend vacancy of 1% as at April 2019," the valuation firm said.

A three bedroom house located close to the Townsville city centre is currently on the rental market with a price guide of $460 per week.

Set in a slightly elevated position, the house at 421A Walker Street (pictured below) comes with three bedrooms, large storage room, living area, open air deck overlooking the pool and private garden area.

Overall, local agents are reporting good levels of interest and sales over the past few months, with anecdotal evidence suggesting some tenants are entering the home owner market following the floods after receiving a payout on contents insurance which provides them the deposit required.

A recent sale was a three bedroom house set on a fully fenced 707 square metre allotment in Condon.

The renovated house at 14 South Vickers Road (pictured below) has been sold for $168,000. 

It comprises three air-conditioned bedrooms, open plan dining and living area, modern kitchen and covered carport.

"To date the suburbs hardest hit by the flooding have seen limited activity as the rebuilding process continues and therefore the impact on value levels remains undetermined," the valuation firm said.